GS · News · 20261103N

Hedge Fund De-Risking Trends

GOLDMAN SACHS GROUP INC · 2026-11-03 · Importance 30 · Surprise 50

Goldman Sachs’ prime brokerage desk reported that October was the first month since it began tracking in 2016 in which both fundamental long-short and systematic hedge fund cohorts fell more than 3%. Fundamental long-short funds lost 3.5%, while systematic strategies declined 3.6%. Goldman’s hedge fund clients were net sellers of global equities by the largest dollar amount in seven months, with long sales exceeding short sales four-to-one. The desk attributed the activity to de-risking rather than outright bearish conviction.

Key facts

• In October, Goldman Sachs' clients were net sellers of global equities by the largest dollar amount in seven months. source
• In October, Goldman Sachs' clients' long sales of global equities outpaced short sales four-to-one, a ratio the prime brokerage desk attributed to de-risking rather than outright bearish conviction. source
• In October, fundamental long-short funds lost 3.5% and systematic hedge fund strategies declined 3.6%, according to Goldman Sachs' prime brokerage desk. source